Chapter 642： Monetary Hegemony-New Compound Standard

"Welcome everyone to listen to Austrian Economic Online, my host is Bonny.

Today, let's talk about a topic that everyone cares most about-gold.

Everyone knows that gold is wealth, and the Aegis that we use every day is based on gold. It can be said that gold is closely related to our lives, and no one can do without it.

In the past month, the price of gold in the Vienna gold trading market rose by 7%, setting a new high in the past two years.

Now connect economist Professor Brigitte Foss to understand the impact of the rise in gold prices. "

"Dididi ..."

Moderator: "Hello Professor Bridget Foss, can you hear me?"

...

Bridget Foss: "I can hear you."

Moderator: "Professor Bridget Foss, the price of gold has risen recently and everyone is very concerned.

Can you talk about the impact of rising gold prices on the world economy? "

Bridget Foss: "Okay, host."

"We all know that gold is a cherished metal, and usually exists directly as currency or standard. The price has always been stable, even if there is little fluctuation.

The price of gold has increased by 7% in the last month, which can be said to be both unexpected and expected.

You may say that my words contradict each other, which is not logical at all, in fact it is not contradictory at all.

Unexpectedly, that is the existence of gold as a currency and its standard, and its own value is unchanged. Under normal circumstances, even if there is fluctuation, it is impossible to rise so much.

But in addition to being a currency, gold itself is a commodity. Since it is a commodity, the price is determined by the market, and a short-term rise is also normal. "

"Besides the halo as a currency, we will analyze the reasons for the rise in the price of gold as a commodity, and everyone will understand.

In the Vienna gold trading market, rising gold prices are not alone. At about the same time, the price of gold in the London gold exchange market also rose year-on-year.

The direct reason for the rise in the gold price was two months ago. More than ten gold mining giants, including South African Mining Group, the British Daos Gold Mining Group, etc., announced the maintenance of their equipment and reduced their gold capacity.

This decision directly led to a decrease in the amount of gold circulating in the global gold market by 20 tons last month, and the supply and demand of the market naturally increased.

Equipment maintenance is temporary, and the gold mining giants also want to make money, and the production capacity will be restored soon.

But whether gold prices can return to normal levels immediately is not necessarily the case. With the development of the times, the gold standard has become the mainstream of the times.

In recent years, the world economy has developed rapidly, and the demand for money has been increasing.

Everyone's demand for gold as the standard gold is also increasing. However, the amount of gold mined has not increased simultaneously.

In order to meet the currency demand in the market, countries continue to increase leverage, and the exchange rate between nominal and gold has not changed, and the risk of additional currency issuance has actually appeared.

This time the exchange rate of gold and multinational currencies has risen, there are factors in this regard. The standard is the inflation caused by the large number of currencies issued by various countries.

In this regard, we need not worry, the exchange value of Aegis and gold is still stable.

Here I suggest everyone, if it is not urgently needed, it is best not to hold a large amount of foreign exchange.

Because no one knows, when the money in your hands may become waste paper.

Judging from the current situation, the currencies of several countries in Europe have experienced substantial depreciation. If these countries do not stop their currency issuance, it will sooner or later lead to disaster. "

Moderator: "Professor Bridget Foss, just now you mentioned that some countries have insufficient gold reserves, which has led to inflation.

So how should these countries deal with this situation? "

Bridget Foss: "The easiest way is to use the new replica approach.

Don't get me wrong, the new complex standard I proposed is not a traditional gold-silver complex standard system, but a more advanced quadratic standard method.

For most countries, gold is not enough for a while. Everyone wants to maintain the gold standard system. What should we do?

After research, I found that using the new complex standard method can perfectly solve this problem.

To put it simply, it is to use reliable international currencies instead of gold, as the standard currency for money.

This is equivalent to using one piece of gold, serving as two standard gold, issuing two currencies, and guaranteeing normal payment. This quadratic standard method, I call it: the new multiple standard method. "

...

Don't know when it started, Franz also developed the habit of listening to the radio, although he knew it was bragging.

The so-called rise in the price of gold is actually a man-in-the-middle battle against the currencies of other countries by the two gold-producing countries in Britain and Austria.

So-called gold production capacity, isn't this the gold mining country?

In order to increase the competitiveness of their currencies, Britain and Austria have been controlling gold exports, artificially creating trouble for competitors.

For the gold standard countries, if there is not enough gold reserves, it will be terrible.

The demand for currency in the market will not be reduced because of insufficient gold reserves. As a last resort, everyone can only increase the leverage of currency issuance.

This is what Britain and Austria want to see. The higher the leverage, the greater the risk. It can't be seen in a period of good economic development. Once there is a change, the collapse will collapse, and there is no ability to resist risks.

The struggle between Britain and Austria for currency hegemony is fierce, and it does not prevent the two countries from joining forces to jointly control the pricing power of gold and first strike other competitors.

It can be said from the beginning that the gold standard was a huge pit set by the British to the world. This huge pit is still a conspiracy. Even if you know that there are risks, everyone has to jump inside.

Regardless, gold is relatively stable. Even if it is artificially manipulated, it is impossible to play too hi! If we play too much, it will also affect the interests of Britain and Austria.

It is not that no country wants to get rid of this huge pit, but it all fails in the end. Facts have proved that countries with a silver standard of play have been pitted even worse.

In the middle and late 19th century, silver has been in a depreciating state, and this fluctuation is much larger than gold.

Both Britain and Austria are countries with a gold standard. For their own benefit, the price of gold will also be stabilized. The so-called market fluctuations are just obstacles to the currencies of other countries.

This amplitude is usually only a few points and does not last. After a few months, the market will return to normal.

Simply put, as long as governments eat gold, the price of gold will rise immediately. When everyone stops eating gold, many markets will return to normal.

This increase is still targeted. If the British pound or Aegis is used to buy, there is no such problem.

If you want to import gold, the tariff is still indispensable. If you directly hold Aegis and British pounds as the standard gold, you can also achieve the purpose, and there is still a tariff on buying gold.

In essence, this is a means of promoting currency hegemony, but it is a little more vague.

...

After listening to a broadcast, Franz hung up the phone and said, "Frederer, go and ask where the radio research and development has progressed. This interesting news should be shared with the world."

Until the radio came out, wireless broadcasting was naturally impossible to talk about. Franz now listens to cable radio, a technology that was born with the birth of the telephone.

In simple terms, it is to connect many telephone lines in series and receive the same information source.

This high technology is naturally not something that ordinary people can enjoy. Listening to the radio requires at least a phone call and paying high radio fees.

At present, there are fewer than 20 cities in the world with broadcasting, and the number of broadcasting users is less than 50,000.

Austria is at the forefront of the industrial revolution, and radio started relatively early. At present, Vienna has more than 5,000 paying subscribers and is the city with the highest radio coverage in the world.

This number is approaching the limit. Want to increase broadcast coverage unless wireless radio is born.

The number of listeners is limited, so it is impossible for radio programs to be colorful. In addition to the news, there are only popular current affairs reviews. Occasionally a few songs, a few jokes, even entertainment programs.

The only benefit is probably no advertising, not that broadcasters don't want to charge advertising fees, mainly because there are too few users to receive a few dollars.

Moreover, the customers now being served are all high-end users, so there is no money maker, and everyone wants high-end services.

Frederick shrugged and replied, "I don't need my father. I just went to see it yesterday. It's progressing very slowly, and the propagation distance is still 1,200 yards (about 1097 meters). . "

No way, who makes Franz's memory bad? The principle of radio has long been forgotten, and now it can only be played by scientists.

"One thousand and two hundred yards", this number is far below Franz's expectations. Don't talk about radiotelephones, even for intercoms, it's a bit stubborn.

Franz sighed: "Forget it, let them experiment slowly! Scientific research is all luck, and it is useless."

This was for Frederick, and it was also for himself.

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